Fixed factors, family farm income and the continuity of Dutch dairy farms

We hypothesize that there is a strong relation between the availability of fixed inputs and the continuity of farms, and verify this hypothesis in three steps. To find the relation between the employment of fixed inputs and gross profit, we specify and estimate a restricted profit function. Bearing in mind that most of the fixed inputs do not have a single market price, we deduce family farm income from gross profit. Finally, we investigate the relation between calculated family farm income and continuity. The outcome clarifies how the employmentor availability of fixed inputs on the farm leve... Mehr ...